Toronto-Dominion Bank (TD) announced that they were going to acquire Commerce Bank Corp for $8.5 Billion in cash and stock. After they announced their plans, check out what happen to their stock. A classic example of selling the news.

TD's average daily volume is a little over 600,000 share, but yesterday they were extremely active and traded over 12 million. In the process of trading, their stock created a descending triangle. This could lead to heavy selling again today. According to the measured move, if TD sees heavy selling again, their stock price could drop more than $5.

On another note: TD is a Canadian company. In the last few months, and especially the last few weeks, the Canadian dollar has appreciated markedly against the US dollar. This acquisition could be a signal of what the foreign market thinks about the USA. If acquisitions continue, the US dollar will most definitely climb out of this rut.



Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.